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are arrested. bret: that's it for "special report" this time. the only place you get the whole story. thanks for inviting us into your home tonight. we'll see you tomorrow. the online show starts right now. shepard: compromise in the house of representatives. divided democrats come together with a plan for your health care reform. so what does it mean for all of us? plus getting ready for the beer summit. i'm shepard smith. the news starts now. [captioning made possible by fox news channel] >> people called me racist. they said i caused all the turmoil. shepard: it was her 911 call that started it all. >> they were pushing the door in. shepard: now the caller finally gives her side of the story. >> i was not planning to make a public statement. shepard: tonight, her own words about what happened and what she says she really told
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police. shepard: but first in the news tonight, a breakthrough on health care reform. conservative house democrats hammered out a deal with party leaders on a bill to overhaul the health care system. it's a bill that would guarantee health care coverage for just about everyone in america. the exact details are still unclear to us, but we're told the cost of the plan has come down. you know that was a huge sticking point for dozens of democrats who consider themselves fiscal conservatives. the so-called blue dog dems say the public health insurance plan will be optional, that it will not be forced on anyone. the changes also exclude small businesses from a rule requiring companies to offer insurance to their workers. and one other big change as part of that compromise. house leaders are dropping their plans to vote on the measure by the end of this week before the recess. instead, now lawmakers say they will have to wait until september to work out the final
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details of that 1,000-page bill, and there is still a lot of work to be done. james rosen picks it up there on capitol hill. the fiscally conservative democrats have been hoping for this -- for this for weeks now, and they have been holding it up as well. what's changed? >> well, some of these blue dog members of the democratic conference here in the house, shep, simply feel that they secured some important concessions from the chairman of the house energy and commerce committee, henry waxman of california, one of the most liberal members in the entire house. those concessions include the ones that you mentioned, trimming the entire cost of this program reportedly by $100 billion, and also making some provisions that would spare some painful budget cuts to rural hospitals. a lot of these blue dog members come from rural areas, shep. shepard: we should point out not all of these blue dog democrats are on board with this compromise, are they? >> that's true. there were seven of these blue dogs on the waxman panel. only four of them went along with this deal today. the other three held out. there are 52 blue dogs in all.
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the group released a statement today saying they haven't ratified this deal. a number of them actively oppose it. here's one of them. >> i would say the majority of the blue dogs think that this bill is not the best bill we can get, and we would like to keep trying. we would like to talk to our constituents, hopefully come up with a bill a little closer to what the senate finance committee is considering. >> shep, if henry waxman thinks he only has to contend with the blue dog democrats and then the house republicans, he has another thing coming. that came from the far left today. his colleague from california, congresswoman lynn woolsey, who heads the progressive caucus, the real liberal members of the house, said they are not behind this either. shepard: as all that was going on in washington today, president obama was out trying to sell the rest of the country on the idea. the president highlighting what he claims are the protections that health care reform would offer all of us. he took his message to crowds at two different town hall meetings. the president insisting the plan is not just for folks who
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are currently uninsured. >> if you have got health insurance, then the reform we're proposing will also help you, because it will provide you more stability and more security, because the truth is we have a system today that works well for the insurance industry, but it doesn't always work well for you. shepard: the president outlining a number of specific protections which he claims the new system would offer. he says insurance companies would be banned from discriminating based on pre-existing conditions. that means they won't be able to refuse coverage based on people's medical history. and they wouldn't be able to drop patients' coverage after they become seriously ill. the president reports insurance companies would no longer be able to charge high out-of-pocket expenses or place annual or lifetime caps on health care coverage either. and he says all of those companies would have to fully cover the cost of preventative care like regular checkups. well, she says she never dreamed her 911 call would be analyzed by the entire nation, but that's exactly what's
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happening after lucille weyland reported a possible burglary at the home of what turned out to be a harvard scholar's house. it turned out gates was just trying to get into his own home, but after the situation escalated, police took him away in handcuffs. gates accused police of racial profiling and critics ripped weyland for throwing fuel on the fire after the police report indicated she described the possible robbers as black men. but remember what she actually said when the dispatcher asked about race? shepard: today weyland said that tape proves how carefully she tried to speak. >> i was called racist, and i was a target of scorn and ridicule because of the things
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i never said. shepard: and whalen also denied a report from the police sergeant who was there at the time, james crowley, that claimed she mentioned seeing two black men on the porch. >> the only words i exchanged were -- i was the 911 caller, and he pointed to me and said stay right there. shepard: but whether her comments today will actually help put this controversy to rest remains to be seen. molly line with the news. she is live in boston. molly, this 911 caller says she came forward because she wants to put all this behind her once and for all. >> exactly. this was a tough day for her. you could see how emotional she was, how she trembled when she stepped up to the microphones. this is about restoring her reputation, her integrity, and just getting her side of the story out there and essentially moving forward. she said she did it not to add to the controversy but to move forward. shepard: now the beer summit. the president has invited professor gates and the police sergeant who arrested him to the white house for a beer tomorrow but no invite for whalen. >> that's right.
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her attorney had some words for the president, the sergeant, and the professor. take a listen. >> the three highly trained guys who reacted badly are getting together tomorrow for a beer at the white house, and that's a good thing. but the one person whose actions have been exemplary will be at work tomorrow here in cambridge. i don't know. maybe it's a guy thing. >> attorney wendy murphy went on to say that whalen doesn't like beer anyway. shepard: and it looks like this controversy is going to cost a different police officer his job. >> that's right. we're talking about a boston police officer here. boston police officer justin barrett was immediately stripped of his badge and gun. when the commissioner apparently found out that this man had sent an email to some friends, some folks in his national guard unit that had included a racial slur in reference to gates. he was immediately suspended. his possible termination pends an actual termination hearing. we're following that as well. shepard: molly line live in our newsroom. there is a new warning tonight
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about the danger of home-grown terrorists. it comes, of course, after the arrest of seven terror suspects in north carolina. now the feds are unveiling what they call a new strategy to enlist all americans in the war on terror. we'll tell you how you could be enlisted and the confessed conman bernie madoff is in the cube again tonight. he is giving his first interview from the hoosegow. as it turns out, he thought the feds should have caught him sooner. so is he apologizing for his $65 billion scam? he will speak in a bit. applebee's 2 for $20!
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shepard: there is a new warning tonight of home-grown terror. homeland security is warning states to be on the lookout for american muslim extremists. it comes just two days after the feds busted a suspected terror group in north carolina. investigators say seven legal u.s. residents were gearing up for a violent holy war abroad. one suspect believed to be in pakistan still missing as fox reports tonight.
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and it seems authorities are now worried about trends involving similar groups of american extremists. jennifer griffin is working this for us from the pentagon tonight. she is in the cube. jennifer, the homeland security chief janet napolitano has some very strong recommendations on how to prevent these home-grown attacks. >> that's right. in fact, she is enlisting the public saying the public needs to help out. she was visiting ground zero today in new york. here's what she said in new york today. >> for too long, we have treated the public as a liability to be protected rather than an asset in our nation's collective security. >> she argued for a state of preparedness, not a state of gear. shepard: new details about the suspects from north carolina write including the one who is still missing. >> i'm not hearing you. shepard: it was my understanding there were new details about the terror suspect -- it looks like we have lost our connection with jennifer griffin. >> i have it now. sorry. shepard: i will try one more
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time. it's my understanding at least that we have new details about the terror suspects from north carolina, including the one who is still missing. >> that's right. we now know the name of that eighth suspect. he is still thought to be in pakistan. family members are still saying that these -- all of these eight are innocent, but we now know also where daniel boyd went to high school. t.c. williams high school in alexandria, virginia. it's actually my local neighborhood school. it was formerly known best for "remember the titans", the denzel washington move that made it so famous. shepard: that and you, we know. thank you. good to see you, as always. another country is agreeing now to take detainees from the prison at guantanamo bay. ireland reports it will accept two detainees who were captured in afghanistan back in 2001. irish officials say even though the men no longer pose a threat, they cannot return to their home countries. ireland becomes the sixth country since january to either take or agree to take detainees from the prison there in gaub.
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more than 200 people are still locked up at guantanamo bay. bernie madoff is answering some questions now in his first on the record interview from the jailhouse. and the conman who admits to defrauding investors out of billions and billions and billions of dollars apparently didn't hold anything back. the lawyers who questioned him say madoff claims he was able to keep his scam going for so long because no one bothered to ask simple questions. and while there were times, madoff says he thought regulators might catch onto his scheme, he also said he wasn't surprised to keep getting away with it. "the fox report's" chief correspondent jonathan hunt is here now. the lawyers said they interviewed him because this scam actually runs deeper than a lot of folks realize. >> bernie madoff has not implicated anybody else at all in this entire scheme. the lawyers who interviewed him say they believe many more people must simply have known what he was up to, and they intend to go after all of them. listen. >> the accountants, lawyers
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that were involved, other traders that were involved, all the hedge fund managers. >> he did this for too many years. the public view of it being a small 17th floor, just a few people doing it. there is a whole lot of bigger story. >> talking of others who may or may not have been involved in this. ruth madoff, bernie mad off's wife is now the target of a $45 million civil lawsuit saying she lived a life of splendor off the back of his wrongdoing. she has, of course, not been charged with any criminal acts, shep. shepard: madoff talked about how he got away with this thing for such a long period of time and apparently tried to show a little bit of remorse. >> according to the lawyers again, he was, quote, very remorseful. as for getting away with his scam, he apparently said to the lawyers -- and i'm quoting here -- i talked to the s.e.c. several times and i met with the securities and exchange commission and thought they got
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me. clearly they didn't get him, shep. now they are investigating their own failures. shepard: i said he didn't hold anything back. if there were others who knew about this and the fed seems to think there have been, he didn't give them up. i wonder what the people who were ripped off by him think about this interview. >> pretty angry. i spoke to bert ross, one of madoff's victims. he lost $5 million. he says he simply doesn't want to hear anything from madoff because nothing that man says, according to bert ross, can be trusted. listen. >> he has no credibility. this is a guy who has spent a lifetime fooling everybody. so all of a sudden for some lawyers to go into prison and say how candid he was, how believable he was, i just don't understand that. i would think that he would be the leading candidate in the world for somebody you don't trust. >> burt ross also described bernie madoff, shep, as an evil genius and a psychopath. shepard: jonathan hunt, thank you for that. well, if you have a question and a computer, you google it, right? that's what most of us do.
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google years ago passed those other search engines as our favorite by far. tonight what the other guys are now doing. the new search engine, the new partnership in the great big internet world. wait until you hear about this. when morning comes in the middle of the night... rooster crow. affects your entire day. to get a good night's sleep, try 2-layer ambien cr. the first layer dissolves quickly to help you fall asleep. and unlike other sleep aids, a second dissolves slowly to help you stay asleep. when taking ambien cr, don't drive or operate machinery. sleepwalking, and eating or driving while not fully awake with memory loss for the event as well as abnormal behaviors such as being more outgoing or aggressive than normal, confusion, agitation and halluciations may occur. don't take it with alcohol as it may increase these behaviors.
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shepard: breaking news now on fox news channel. this is the san fernando valley in california. metro link train has now, i'm told, collided with a vehicle on the tracks. this is the -- the vehicle struck at van nuys boulevard about two and a half miles south of the san fernando station. we have gotten this information by tweets from metro link on the social website twitter, so some of the abbreviations i, quite frankly, don't
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understand. it's a train 218, struck a vehicle at van nuys approximately two and a half miles. these are pictures from kttv. they are not finding a lot so they are shooting the underbelly of the chopper. that's one thing to see, but i would rather see the wreck. we are led to believe there may be some injuries. i say led to believe because i don't know. when we find out more on that, we'll take you there obviously metro link train traffic is suspended at least for the moment. more on that when that comes in. there was a major announcement that could really change the way we use the internet. microsoft is teaming up with yahoo. the two companies are hoping that together they can convince you to change your habits and stay away from google from time to time. google of course has become the go-to website for 65% of all internet searches. a huge share of the market. microsoft just upgraded its own search engine. it handles less than 10% of all searches while yahoo gets about 20%. now those two were coming together, microsoft and yahoo. sandra smith from the fox business network is with us.
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how does this partnership affect me? >> google right now dominates the search engine business out there. as you just saw in the graphic, 65% of all of us when w when we do our searching go to google. yahoo before this deal today just had 20% and microsoft just over 8%. this partnership today aims to really make that whole environment much more competitive and the two companies microsoft and yahoo who entered that deal today say it's going to improve the web search experience for all of us because now they are not going at it individually challenging google but now they will have the ability to innovate and advance the search technology together. shepard: this deal comes at a pretty crucial time in the industry, really, because google has been making moves to challenge microsoft's stronghold in the software business. >> this is huge because analysts say this could heat up and be an even bigger battle than the search engine business that they are going for right now because google is challenging microsoft 90% stronghold on the operating system business that they have with windows worldwide by google now developing their own free operating system.
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it's called chrome. it's expected to be out sometime next year. that could be a pretty intense battle all in itself. shepard: bet it will be. sandra smith from the fox business network. great to see you. all right. the crew of shuttle endeavour making some last-minute preparations before heading back to solid ground. today the astronauts inspected the shuttle's heat shield again. nasa reports that is standard practice at the end of a flight. the agency wants to make sure the shuttle was not damaged by any space junk or tiny meteorites and such during this mission. no word tonight of any problems with that heat shield at all. the crew scheduled to land on friday after 16 days in space. they docked yesterday after performing five space walks to do construction on the space station. it is already a global outbreak and moving faster than any other infection ever recorded. now the u.s. government is taking steps to protect us all from the h1n1 virus. the fall is coming, and so is the flu. still ahead, what the government is doing and why some people could find out they
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can't have the vaccine. plus this woman was found murdered. her unborn child cut from her body. and tonight there is a desperate search for a baby that police say still could be alive. all the details are straight away. primo stuff. one appetizer and two premium entrees. just twenty bucks-every day. genuine food. generous portions. genius price. 2 for $20! only at applebee's.
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a freezing aquarium the longest? she says when she tried to swim to the surface her legs wouldn't work and she says she thought she was dead for real until she felt something pushing her. it was one of the beluga whales in the aquarium. it had grabbed her in its mouth and was -- look at this -- carrying her to safety. this is on the right now. the diver described it as a tremendous force driving her toward the surface. an organizer says the whale just noticed the problem before anyone else did. the diver said to be fine now. this right now the most popular story at a fine tribute to the hero whale of china. wow. well, there are millions upon millions of fish in the sea bow sides that whale. now some scuba divers and snorkelers across the state of florida have decided it's a pretty good idea to dive into the ocean and count them. phil keith something in our south florida newsroom. >> shep, the great american
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fish count lets us know what exactly is under water and how much. typically the data guides public policy where perhaps over fishing or coastal land development may be shrinking fish populations. >> we're on the south end of the reef. the third largest barrier reef in the world. >> all right. >> right along the florida keys where the visibility around molasses reef is amazingly clear, counting the fish comes easy. with special waterproof clipboards, waterproof pens and eyes rapidly scanning the deep, these scuba divers become citizen scientists for the great american fish count. they record what species they see and categorize how many swam by, either one, a few, many or abundant. these are grunts. here is an angel fish. there goes a parrot fish. >> that's great. >> 62 fish in 60 minutes. that's a fish a minute.
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>> 62 species. >> reef, the reef environmental education foundation, organized the fish count with several thousand divers counting fish all along the u.s. coastline, in the caribbean, around the galapagos islands and hawaii. >> because as much as we know, there is still that much more that we don't know. >> rather than just diving and taking pictures, i'm taking inventory. i'm contributing something to this big picture. it's really kind of cool. >> and already a few surprises. the orange sea cucumber starfish, normally abun dent in the puget sound off seattle not there this year. here in florida, the spiney flounder for the first time has been spotted living in the florida keys. so now the question for scientists -- how come? shepard: good question. phil keating, thanks. i'm shepard smith. this is "the fox report." it's the bottom of the hour. time for the top of the news. the u.s. military getting
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involved with a battle against h1n1. fox news can now confirm the military has taken steps toward setting up possible response teams toward a serious outbreak this fall, meaning send military personnel out. the defense secretary is expected to sign the former order for those teams soon. the fed estimates h1n1 has already infected more than a million americans. today, today the government took a closer look at just how prepared we are for a pandemic. >> this virus has not gone away, and we cannot let up for one moment. in concert with our partners at the homeland security and throughout the administration, we are doing everything possible to monitor and respond to this virus. shepard: and one of our most vital responses has to do with the vaccine. we're tracking h1n1. brian wilson tracking h1n1. he is on capitol hill. we have an update today on the vaccine progress. what's the word, brian? >> the word is it's not ready
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yet. it probably won't be ready until the fall. they are testing to determine the effectiveness and the proper dosage levels for the vaccine. that takes a while to determine. and if they jump too soon, they might get a vaccine that sort of misses the target. the problem is this particular virus, it morphs, mutates, and if you jump too early, you simply don't get the most effective mix that will do the most good for the most people. shep? shepard: is it true that even after the vaccine is ready, some people will be told they just can't have it. >> that is absolutely true. they have developed a list of who needs it most. for the most part, it's health care workers, pregnant women, children and young adults between the ages of 6 months and 24 years old. these are the most at-risk populations. and if there is a shortage of the vaccine, that list gets tightened even more. now, the elderly need the seasonal flu shot, the seasonal flu shot, but the research seems to suggest that the elderly do not face as great a risk with h1n1. take a listen to how they talk about this. >> the idea was after these
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other younger age groups have been addressed, if supply is adequate, if global circumstances and the epidemiologic data permit, the vaccine could be offered at that time. >> you can imagine, shep, there will be a lot of confusion when that time comes. shepard: they talk about this military movement. what do we know about details of that, brian? >> there is a plan said to be on the desk of defense secretary robert gates that would establish five regional military teams that would respond sort of at the direction of fema. one presumes to maintain order and to enforce quarantines if necessary. right now it's just a plan put for the by northcome. it has not yet officially been proved to our knowledge. shepard: brian wilson live on capitol hill. thanks. word of a bird strike involving a commercial airplane. we're told now this is the plane which was hit right here. an american airlines md-80 forced to make an emergency landing in st. louis shortly after takeoff.
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there were 140 people on board at the time, according to the airline. we're told a passenger on flight 449 saw a bird fly into the plane's right engine and the plane was still climbing. american now reports that engine was quickly disabled. the jet was on its way to los angeles from lambert, st. louis international airport but the bird strike forced the pilot to turn back around. we're told nobody was hurt. the federal aviation administration reports that since 1990, 89,000 bird strikes have been reported, but that that's just a fraction of the actual number which could be five times as high. now, you recall a collision with a flock of geese forced usairways flight 1549 to land on new york's hudson river earlier this year. there it is floating. captain sullenberger became a hero for saving all lives on board. now a weather alert. blistering heat wave scorching parts of the nation. in some places, it's so bad the heat is literally melting roads. kid you not.
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nowhere is the sweltering weather as surprising as it is in the pacific northwest where temperatures have been topping 100 degrees in the seattle area, highly unusual for that region. here in new york, it's becoming a gully washer, i tell you. rick reichmuth is in the extreme weather center. how long do we expect this heat wave out west to continue? >> they have one more really bad day of this, shepard. then we'll cool things down a little bit and maybe climb a bit by the end of the week. right now you're at 102 in seattle. before today your all-time record for any date was 100 degrees. today we actually got to 10 3 in seattle so we have blown the all-time record. heat extends all the way up and down this corridor here. certainly the southwest but you expect to see that. 98 degrees tomorrow still in seattle. maybe a couple of degrees higher than that. the heat is going to continue unfortunately. you notice out across parts of the plains still feeling like spring. summer really hasn't arrived. this jet stream is way above areas of parts of canada, out
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across the pacific northwest. dipping in here toward the east. these storms in the east are continuing to funnel along here. i think we're going to see that potentially for about the next week or two. right now, shepard, another big batch of this rain. we have had tornado warnings across much of the new york metropolitan area today. we're watching very heavy areas of rain. some areas have seen five to six inches of rain. we cannot rule out a few tornadoes across some very populated areas. shepard: rick reichmuth, thank you, sir. a powerful storm leaves folks stranded as their boat starts to sink. a fox trip across america. massachusetts, rescuers pulling four men to safety when strong waves overpowered their boat off the coast of martha's vineyard. we're told the boat completely sank in just two minutes. can you see it there in the distance. the men were competing in the area's annual shark fishing tournament. new york, jackpot in the big apple. new york city toll collector
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aubrey boyce is the winner of the megamillions lottery. the prize, $133 million. >> i will be going on a dream vacation somewhere warm. shepard: he has chosen a lump sum which after taxes adds up to $56 million. washington, a grandmother fights off a purse snatcher outside her assisted living facility in longview. police say the suspect tried to steal the bag which was tied tightly around the arm rest of her wheelchair. >> oh, he thought that i was going to be this frail little thing that couldn't do anything. so i started ramming him with the chair. he went running off like a little girl. shepard: grandma is now considered a hero back at home. texas, a family during missing for 10 months after hurricane ike ripped through the state, reunited now with its owners in clear lake. the dog disappeared when the storm took down the family's back yard fence. the owners say when their long lost pet returned to the neighborhood, they knew right
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away. >> she immediately sat down, put her paw on my shoulder, and just started whimpering and crying. shepard: the family says the dog is in good shape despite being 14 pounds lighter and covered in ticks and fleas and part of a fox watch across america. shepard: a newborn baby the victim of an attempted kidnapping at a military hospital at fort hood in texas. the army has released surveillance pictures of a woman it calls a person of interest in the case. here she is. they are asking for your help in identifying her. investigators say a woman dressed in medical scrubs took an infant from a room at the hospital. that set off a warning alarm. and the woman apparently managed to get away but without the baby. and then there is this woman. who was eight months pregnant, found murdered in her home, her fetus cut from her womb. police in worcester, massachusetts, are now trying to find the baby which they say
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could still be alive. >> it may be alive as we speak now, but the baby would be in dire need of medical attention. >> i pray it is alive and if whoever took it, that they please bring it to a safe haven. if they do not want to go to the police. shepard: the landlord says he found 23-year-old darlene hanes' body wrapped up in bedding. she had apparently been dead for several days when they found her. investigators say they are still looking into the exact cause of death, but they say the autopsy shows hanes suffered head injuries. well, investigators are telling us that human error caused a commuter plane crash near flouf earlier this year. that crash cost 50 people their lives. now there are new efforts to take human error factor out of plane travel. we'll tell you how congress is getting involved with that coming up next. and have you seen those so-called smart cars about the size of a -- kind of a soda can maybe?
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turns out some people are doing some very dumb things with them. i was always going
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having to go in the middle of traffic and just starting and stopping. having to go in the middle of a ballgame and then not being able to go once i got there. and going at night. i thought i had a going problem. my doctor said i had a growing problem.
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shepard: news breaking during this newscast, a collision between a car and a train in the san fernando valley. jonathan hunt in the newsroom with it. >> the los angeles fire department now telling us that the elderly woman driver of a car, that car you see right there, was killed in this collision with a metro link train. it happened just outside san
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fernando, california. that's about 20 miles northwest of downtown los angeles. there were 22 passengers on the train. none of them has been injured. we are told there is no indication as yet as to how and why that woman came to have her car struck on the rail track. shep? shepard: jonathan hunt with the update from the newsroom. thanks. now a plan to make flying less dangerous by curbing human error. lawmakers on capitol hill are pushing a bill to crack down on sleepy pilots and improve their training. remember earlier this year, 50 people killed in a computer plane crash near buffalo, new york. investigators say now that the two pilots made critical errors and were apparently distracted, overtired and not equipped to deal with the icy conditions that night. again, that's from the investigators. molly henneberg has this news from washington. >> shep, members of the house transportation committee say there is a reason why this
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legislation focuses mainly on pilots of regional commuter planes. >> the last six accidents we have had in commercial aviation has been with regional carriers. three of them it has been suggested it involved pilot performance. >> including he says the deadly colgan crash in february in buffalo. lawmakers say their bill would require pilots to have 1,50 flight hours to fly regional planes. the current requirement is 250 hours. it would update fatigue rules for pilots and would increase pilots' training time in midair stall recovery and other potential problems in flight. >> that training an retraining is vital to pilots to keep current with their skills. >> some people aren't going to like this. there is going to be some kickback, i can tell you. >> the head of the air transport association which lobbies for airlines says the industry is already working on it.
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>> the federal aviation administration says it has recently updated its pilot training rules and says it will propose new fatigue regulations in early 2010. shep? shepard: molly henneberg reporting from washington. here in america, people have been cow tipping for years. in europe, some are now raising the stakes, flipping cars into canals. the ride of choice among the culprits, the fuel-efficient two seater smart car. think of it. at about 1,800 pounds, it's small enough for a hand full of people to pick it up and flip it right there into the water. in amsterdam where they were probably smoking up before, pranksters have tipped dozens of cars into the city's canals. police say they are worried the trend could spread to other european countries. he is looking at three and a half years in prison for
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accidentally shooting himself in the thigh at a new york city nightclub. the former new york football giant plaxico burress giving his side of the story at a grand jury hearing here in manhattan today. he has already pleaded not guilty to weapons possession charges. today he told reporters he is sorry and remorseful. the grand jury would ultimately decide whether to indict him, but new york's district attorney has reportedly insisted that plaxico do some jail time. new york mayor michael bloomberg has made similar demands. congress is consider a tax on health benefits for the first time. so do you know what your plan is worth? how your paycheck could take a hit even if your benefits don't get taxed? plus if you're planning a trip to the beach, wait until you hear what one group found in the water. where to find the cleanest beaches in all of america and the dirtiest? i was in the grocery store when i had a heart attack.
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my daughter was with me. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time. go climb a tree. or discover things you've only read about. get the gear to get it done at bass pro shops. like the body glove method life vest for only $19.94. and take 33% off all remaining towables. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry. and 1300 are secretly checking email... - on a vacation. - hmm? ( groans )
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shepard: more troops may be coming home. the defense secretary robert gates returning from a trip from iraq and apparently he liked what he saw. secretary gates says the u.s. military may bring thousands of u.s. troops home earlier than first planned. he says the top american general in iraq told him that the security situation is better than they had expect the it would be. as a result, secretary gates reports the pentagon may bring 5,000 troops home early. for some context here, the u.s. currently has about 130,000 forces in iraq with plans for 100,000 combat troops to stay in the country until after the local elections there in january. the economic slowdown is itself slowing down, so says the latest survey of economic conditions by the federal reserve. the report shows the pace of the recession has slowed or stabilized in most places, even as the jobs market remains very weak. it could be a jobless recovery. that was one of a handful of
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reports that had investors remaining cautious today. markets opened lower and stayed there throughout the session. by the closing bell, the dow was off 26. the nasdaq minus eight. the s&p 500 minus four. federal investigators busting dozens of doctors and other health care professionals, accusing them of scamming the taxpayers by billing medicare for millions of dollars worth of items that the patients never needed. the feds are rounding up 30 suspects in four different parts of the country. it's the third major medicare fraud bust since may when the administration announced a new effort to combat the problem, claiming it costs all of us billions of dollars every year. lawmakers are still struggling to find the estimated $1 trillion needed to fund the health care program. now they are talking about taxing high-end health plans. insurance companies would be footing the bill, but there are concerns that the costs could be passed right along to all of us. shannon bream following this tonight from washington. shannon? >> hi, shep. well, you know the idea of
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taxing employees for their health care benefits actually fell absolutely flat when it was floated here on capitol hill, so now senators are talking about going after those insurers who issue the plans, especially those high ticket ones known as cadillac plans. senator john kerry is floating this idea of taxing insurers on high-end plans that they sell. one senator told me we're talking about policies with premiums in excess of $25,000 a year. the aim is to try to raise roughly $100 billion over 10 years, but of course that's just a fraction of the cost estimates we have seen for health care reform. and experts say less than .5% of americans even have these pricey plans, so you have to wonder if taxing them would actually generate the revenue they are looking for. also, this expensive coverage isn't just for wall street executives and big-time bankers. a lot of these plans actually belong to older people or those who are chronically ill, so taxing them could backfire. >> if you set a threshold for taxation at, say, $25,000, you may also be taxing plans that
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include older people on average, which is why the premium is so high. so you would be taxing people as a result of their health status as opposed to because of their -- because they are on a cadillac plan. >> a lot of people are lined up against these plans including a lot of top union boss who is say it doesn't matter who you tax, they are convinced that all of us, the employees, are going to wind up footing the bill. shep? shepard: shannon bream with the dome on her shoulder in washington, thanks. the ocean. sounds good, right? looks nice in the cube, too. wait until you hear what might be in that water. raw sewage, bacteria, human and animal waste. of course there is fish poopy. and it all, according to an annual report from the national resources defense council, it says the pollution is coming from dirty storm water and overflowing sewage. as you might imagine, swimming in all that nasty stuff can cause health problem, including stomach flu, skin rashes, pink eye, hepatitis, and that's not
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all. hard to keep up. as for the best and worst of them all, according to the report, the cleanest beaches in all the country are in delaware, new hampshire, and virginia. and then beaches in louisiana, ohio, indiana, and illinois were said to have the worst quality waters. the best are in the florida panhandle. i don't care what they say. michael phelps getting back in the pool after yesterday's stunning loss and this time without such a fancy swimsuit. how did he do? and jeep dealer, and get up to double the government's cash for your old car. now get up to $4,500 for your old car... plus, up to an additional $4,500 cash allowance. no turn-in? no problem. your dodge, chrysler, and jeep dealer guarantees everyone up to $4,500 cash allowance... on virtually every model. get to your dodge, chrysler and jeep dealer on the double, and get double cash for your old car!
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home run! (announcer) he's sweet. even with one third less sugar than soda. kool-aid. delivering more smiles per gallon.
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shepard: the swimmer michael phelps doing what he does best -- winning. phelps set the new world record for the 20-meter butterfly at the world championships yesterday. this after he came in second in the 20 meter free yesterday. some analysts say his opponent won because of his high-tech swimsuit. in today's race, phelps wore a suit with longer legs, no top. he swam more than half a second
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fast than his personal best. well done. the woman who called police to report that possible breakin at the home of a harvard professor says it hurts to be called a racist based on words that she never used. and rescue workers say an elderly woman was killed when the car in which she was driving collided with the los angeles metro link train during this newscast. on this day in 1981, the world witnessed a fairy tale wedding for the ages when britain's prince charles tied the knot with lady di. the couple had met four years earlier, got engaged just five months before the wedding. what a ceremony it was. more than 2,600 guests, including nearly all of europe's heads of state. on top of that, close to a billion people watched it in the telly. within the next few years, charles and di had two children, william and harry. we all know the fairy tale didn't last. there was a divorce in 1996. diana died in a car crash the following year. but a prince and a princess were husband and wife 28 years ago today. and now

The FOX Report With Shepard Smith
FOX News July 29, 2009 7:00pm-8:00pm EDT

News/Business. Analysis and interpretation of the day's lead stories. New. (CC)

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